Customs valuation for used imports may rely on Chartered Engineer assessment when no load port certificate is produced.

For old and used imported goods, the declared transaction value may be rejected where no load port Chartered Engineer certificate is furnished and the value cannot be verified on the importer's declaration alone. Valuation may then be made on the basis of an approved Chartered Engineer's assessment, including depreciation where appropriate, under the Customs Valuation framework and the relevant departmental circular. On these facts, the enhanced valuation based on the Chartered Engineer certificate was upheld and the impugned valuation order sustained.

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Issues: Whether the rejection of the declared transaction value and enhancement of value on the basis of a Chartered Engineer certificate was justified in respect of used and old imported goods imported without a load port Chartered Engineer certificate.

Analysis: The imported goods were old and used, and the declared value was sought to be verified in the absence of a load port Chartered Engineer certificate. The valuation was undertaken on the basis of examination by an approved Chartered Engineer, who also considered depreciation. In such circumstances, the declared transaction value was found to be incapable of acceptance merely on the importer's declaration, and the valuation method adopted under the Customs Valuation framework and the departmental circular was held to be proper.

Conclusion: The rejection of the transaction value and its enhancement on the basis of the Chartered Engineer certificate was upheld, against the assessee.

Final Conclusion: The appeal failed and the impugned valuation order was sustained.

Ratio Decidendi: For old and used imported goods, where no load port Chartered Engineer certificate is furnished, the authorities may reject the declared transaction value and determine value on the basis of an approved Chartered Engineer's assessment, including depreciation, if warranted by the circumstances.

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